Foreign crypto miners could be spying on US bases: Elizabeth Warren

Anti-crypto United States Senator Elizabeth Warren has been on the crypto warpath again, this time warning a senate committee about the dangers of foreign-owned crypto mining operations on American soil.

At a hearing of the Senate Committee on Banking, Housing, and Urban Affairs on July 25, Democrat Senator Elizabeth Warren aired her views on foreign-owned crypto miners, which she claims is a national security threat.

Foreign companies building crypto mining facilities on US soil are a “disaster for the environment,” which can also pose national security risks, stated Warren, adding:

“They’re loud, they’re hot, and they suck up a ton of electricity, which can crash the power grid.”

The tirade was aimed at one particular facility, Chinese-owned MineOne, which was located a mile away from a strategic missile base in Wyoming before President Biden ordered it to be removed in May.

Rosen asked whether there was a general concern about foreign crypto mining facilities in the United States, to which Warren replied that they could be used for espionage.

“Foreign adversaries are using cryptomines to spy on US military operations. That is an obvious national security risk. But it isn’t the only risk. Foreign-owned cryptomines also threaten the energy grid.”

She added that foreign-owned crypto mining facilities’ connection to our energy grid “could leave the US vulnerable to targeted blackouts and cyberattacks.”

Senator Warren then took a swipe at digital assets themselves, claiming that foreign entities have been buying mining facilities “in secret” by paying in crypto, which “allows them to bypass our traditional banking system and the Anti-Money Laundering rules.”

This is also how US-based crypto mines “have been able to secretly send millions of dollars back to China,” she claimed before concluding that it is “time for us to pass laws.”

It has been well documented that crypto mining can benefit energy grids by balancing load and increasing renewable electricity capacity.

Crypto mining’s inherent interruptibility and swift load response capabilities could enhance power grid flexibility, a research paper published in November 2023 revealed.

However, in April, the Biden administration ordered a crackdown on the crypto mining industry, citing China as an example to follow in its ongoing war on the industry.